Kate Osborne
Main Page: Kate Osborne (Labour - Jarrow and Gateshead East)Department Debates - View all Kate Osborne's debates with the HM Treasury
(1 year, 9 months ago)
Commons ChamberLast week’s autumn statement failed to address our major economic problems. We have had 12 years of cuts leading to the collapse of our public services. The Government are now proposing another round of austerity, but, Mr Deputy Speaker, there is nothing left to cut.
The Chancellor’s statement leaves people facing a winter of hardship, with the Institute for Fiscal Studies admitting that we have just got “a whole lot poorer”. It leaves our NHS, councils, schools, transport and police all unable to cope financially. It does nothing for small businesses struggling with bills and at risk of going under, or for new businesses, such as the independent vet practice, Bridge Referrals, in Boldon in my constituency, which has raised its concerns with me about soaring energy bills.
The statement also does nothing for our local government services. Councils have lost billions from their budget and cannot cope with more cuts. It does nothing for public sector workers who have seen their pay eroded—their wages are worth less now than they were in 2010. The autumn statement proposes more real-terms pay cuts, pushing more public service workers into food poverty. We have already seen reports that nurses, teachers and firefighters are now reliant on food banks. It does nothing for our NHS. As Health Secretary, the current Chancellor caused a huge amount of damage to our NHS with cuts and privatisation, leaving us with a waiting list of 7 million, 132,000 staff vacancies across our NHS, and another 165,000 vacancies in care. Now he wants to pretend that the NHS is being protected. Well, it is not. We can all see the push towards a two-tier system that prices the poorest out of healthcare.
There was nothing in the autumn statement to protect the lowest paid and most vulnerable in our communities. With average rent up by more than 8%, and some landlords asking for as much as a 15% rise, there was nothing to protect private renters. There was nothing for the 800,000 children living in poverty who do not even get a free school meal, and nothing for families who are living in fuel and food poverty.
I am in daily contact with people who are struggling—struggling not with a choice of heating or eating but because they are now unable to do either. Kathleen, a 73-year-old woman from Wardley in my Jarrow constituency, emailed me to say that she has cut back on both heating and eating and does not know what else to do. Then there is the couple living in Hebburn with two kids. A year ago, they still donated to the food bank. Now, they are using it themselves. They are turning to the food bank for blankets to keep warm and food for their kids. They have given up their car. They are both still working, but their bills and food prices have risen so much that they are now struggling and are at risk of losing their home.
So many people tell me that they cannot see any hope of things getting better. There is no light at the end of the tunnel. That is what the last 12 years of a Tory Government and the Chancellor’s autumn statement have done, and are doing, to our communities. On top of this, the autumn statement will force families such as the couple in Hebburn to pay more in tax, as the freeze in the income tax threshold equals a pay cut for millions. We have a stealth tax rise and a rise in council tax. We cannot carry on like this.
When the Chancellor said that the UK will “pay our way”, he meant that our communities will pay. When he said, ahead of his autumn statement, that
“everyone will have to make sacrifices”,
he did not actually mean everyone. The UK billionaires who increased their wealth by £55 billion last year will not be making any sacrifices. The companies that made obscene excess profits will not be making sacrifices. Those who can afford to make sacrifices are not being asked to pay for the crisis that their class has caused.
The OBR’s assessment is that this never-ending austerity will lead to a further decline of 7% in our living standards. Yet the Chancellor claims that his Government are compassionate. There is nothing in the autumn statement that shows compassion. A compassionate Government would ensure that our kids were not hungry. A compassionate Government would introduce a one-off 1% wealth tax on households with more than £1 million, generating £260 billion, but, instead, the Government are content to force people into deeper poverty while lifting the cap on bankers’ bonuses. People in our communities need investment, not more cuts. In her summing up, will the Minister tell us when the Government will stop making the political choice to keep people in poverty?